Cerrudo (chapter 2 Lesson 4 Forms of business organizations).pptx

BUSINESS ORGANIZATION

1. LESSON 4: FORMS OF BUSINESS ORGANIZATION

2. The forms of a business organization may depend on its purpose, nature of operations, and resources. However, a business organization’s form may change with the changing times and the demands they present 2

3. CHANGING FORMS OF BUSINESS ORGANIZATIONS: Change is constant and organizations continue to undergo various changes to ensure effectiveness, efficiency, and relevance in the world of business.

4. SIMPLE BUSINESS ORGANIZATIONS: Simple business organizations - these refer to business organizations with few departments, centralized authority with a wide span of control, and with few formal rules and regulations. These are easy to manage because of their simple form. However, change of form follows as the company expands its operations. Functional business organizations : these pertain to business organizations that group together those with similar or related specialized duties that introduce the concept of delegation of authority to functional managers like the personnel manager, sales manager, or financial manager but allow CEOs to retain authority for strategic decisions 4

5. 5 Divisional business organizations these are business organiza - tions made up of separate business units that are semi-autonomous or semi-independent, with a division head responsible for his or her unit's performance In other words, each division has its own functional organization and its own general manager; however, the central headquarters management maintains responsibility for the delineation of organizational goals of the individual divisions. Nonprofit organizations : these are business organizations designed for the purpose of achieving their organizations' mission, vision, goals, and objectives, providing service to clients without expecting monetary gains or financial benefits for their endeavors. Their success or failure may be measured by the high or low evaluation scores they obtain.

6. Nonprofit organizations : these are business organizations designed for the purpose of achieving their organizations' mission, vision, goals, and objectives, providing service to clients without expecting monetary gains or financial benefits for their endeavors. Their success or failure may be measured by the high or low evaluation scores they obtain. Profit business organizations : these are business organizations designed for the purpose of achieving their organizations' mission, vision, goals, and objectives and maintaining their organizational stabil - ity through income generation and profit-making activities. Immediate revenues or cost factors account for their success or failure. 6

7. Open/flexible business organizations : these are formed to meet today's changing work environment Business organizations affect and are affected by the environ- ment ; therefore, change becomes inevitable. Other forms of business organizations: 1. Team structures - where the organization as a whole is made up of work teams (small, but focused) that work together to achieve the organization's purpose; popular in collectivist culture. 2. Matrix business organizations those which assign experts or spe - cialists belonging to different functional departments to work together on one or more projects; exhibit dual reporting relationships in which managers report to two superiors-the functional manager and the divisional manager. 3. Project business structure - a business organizational form with a flexible design, where the employees continuously work on projects assigned to them; projects may be short-term or long-term and members disband when the project is completed. 4. Boundaryless business organization - a business organization whose design eliminates vertical, horizontal, or external boundaries, and is described to be flexible and unstructured; there are no barriers to infor mation flow and, therefore, completion of work is fast. 5. Virtual business organization - made up of a small group of full-time workers and outside experts who are hired on a temporary basis to work on assigned projects; members usually communicate online. . 7

8. Thank you Brita Tamm 502-555-0152 [email protected] www.firstupconsultants.com